Posts by Alexandra Ruffell

Hampton: 30 May Street (Robin Parker, Marshall White) – strong result, sold under the hammer with 5 bidders

Saturday was the first of the bigger auction weekends for the quarter and for sellers it was a good one. The REIV reporting a clearance rate of 77%, up 2% on the same weekend last year, although numbers were down with around 100 less properties to choose from.

The shortage in stock seems to be the ongoing discussion point with buyers … there just isn’t enough of the right properties (quality family homes and/or good downsizer options) to satisfy the demand.

Observations:

Vendors in traditional ‘fringe’ suburbs such as Brighton East and Glen Iris (particularly Brighton East, east of the Nepean and Cummins Road and Glen Iris, north of the Monash) are taking advantage of the current market .

Brighton East had 9 reported auctions – 8 sales, 1 pass in. Three of the bigger ones in the abovementioned precinct were:

Glen Iris had 9 reported auctions and sales – three of the bigger ones in the precinct above were:

Land/major renovations were still in demand with strong results in Kew and Elwood.

Brighton: 197 Church St (David Hart, Buxton): after auction, undisclosed above $3.25m

Off-markets:

Auction Highlights:

Glen Iris: 17 Ferndale Road (Daniel Wheeler, Marshall White), sold under the hammer $2.41m

17 Ferndale Road, Glen Iris: Daniel Wheeler (Marshall White), under hammer, $2.41m, The sun was shining and the stage was set for this auction; a period home in the Hill and Dale precinct of Glen Iris. Whilst liveable and rentable, most would look at this property as a potential new home site and it had the added benefit of  a north—facing rear.  Importantly it backed on to Ferndale Park, and these offerings have certainly gained popularity with buyers in recent months (and a really strong sale in nearby Wallis Ave last week). Auctioneer Daniel Wheeler gave a no-nonsense preamble and looked for an opening bid, which came reasonably quick from the crowd at $1.6m. It was not too long after that the property was announced ‘on the market’ at $1.7m and then crept steadily in the $2m’s, selling strongly for $2.41m. Great result here for listing agent Zali Reynolds and co-agent Jason Brinkworth. Most at the auction would note that the property next door is listed for upcoming sale with Damien Davis of Jellis Craig, which is a new home on similar land, so it will be interesting to see what the vendor’s expectations are.

Hampton: 44 Kingston St (Chris Carrington, Nick Johnstone), sold under the hammer $1.922m, 5 bidders

44 Kingston Street: Chris Carrington (Nick Johnstone), under hammer, $1.922m, Quite a high number of people wandered down from nearby May Street to watch this Nick Johnstone auction in Kingston Street. Chris Carrington was our auctioneer and after the Domain coffee van drove away, he called for an opening bid. Bidder 1 offered $1.5m and we were away. A total of 5 bidders competed for the property, with bids coming fast and strong. Eventually bidding slowed to $1,000 increments, selling to a very happy Bidder 3 for $1.922m

Properties we like, scheduled for auction this coming weekend:

Agent Comments:“How has the year started compared to last year?”

Stewart Lopez (Kay & Burton): “As usual, the market has started strongly after the break. A shortage of listings is driving strong sales at all price points, in particular with ‘off market’ transactions.”

Five bidders battled it out at 13 Rosemary Road, Beaumaris (O’Brien Real Estate) on Saturday. The home sold for $1.475m in front of a big crowd of around 90 people

Welcome back to the 2016 Melbourne Property Market and thank you for reading our weekly Market Pulse. We will continue this throughout the year during key auction weekends. We hope you find it both enjoyable and helpful.

2016 has started as expected, with no real surprises or changes to the 2015 market.

Our early observations reveal:

There was really only a light scattering of auctions this weekend. Early results were positive with the REIV reporting a clearance rate of 77% across Melbourne. A common thread amongst some on offer were they were dated homes with good land content and functional townhouses

Auction Spotlight:

Off-markets:

Auction Highlights:

Glen Iris: 10 Wallis Avenue (Daniel Wheeler, Marshall White), sold $2.205m, 5 bidders

10 Wallis Avenue,  Glen Iris (Daniel Wheeler, Marshall White), sold $2.205m, 5 bidders

Dated single level home, but it was all about the land here.  With mature trees at the front and rear of the block which may be difficult to remove (STCA), the property did have good width and most importantly it backed on to Ferndale Park, a point which was not lost on buyers and the very good-sized crowd of well over 100 people. Opening with a low cheeky crowd bid of $1.3m, the bidding soon went up to $1.75m and the property was called on the market by auctioneer Daniel Wheeler. That only seemed to warm bidders up and with five of them fighting for this property it sold well above reserve for a whopping $2.205m (or $3,083sqm).  Interesting to note next door (no.8) sold for $1.441m around two years ago. Very professional auction by Daniel (he didn’t miss a bidder, was courteous to the crowd and didn’t skip a beat), and he was well supported by co-agent Clare Maloney –  they make a good team

Beaumaris: 13 Rosemary Road (Byron Kerr, O’Brien), under hammer, $1.475m, 5 bidders

13 Rosemary Road, Beaumaris (Byron Kerr, O’Brien Real Estate), under hammer, $1.475m, 5 bidders

Quite a crowd gathered in Rosemary Road for the auction of number 13 – a three bedroom, three bathroom family home surrounded by tropical gardens. Around 90 people lined the street on both sides and enjoyed a coffee from the mobile coffee cart. Byron Kerr was our auctioneer and after an enthusiastic and succinct preamble, he called for an opening bid. A yell of $1m came from the crowd and we were away. Bidding came from all directions – with five bidders in total. The home was sold for $1.475m to a hearty round of applause from all those in attendance.

Hampton: 17 Banks Avenue (Troy Ellis, Follett & Co), after auction $1.66m)

17 Banks Avenue, Hampton (Troy Ellis, Follett & Co), sold after auction $1.66m

Banks Avenue was very tranquil – a reasonable sized crowd of around 30 people had gathered to see what would transpire at the auction of number 17 and they chatted quietly as they awaited the commencement of proceedings. Auctioneer Troy Ellis took centre stage and gave a thorough preamble before asking for an opening bid. The crowd remained silent so Mr Ellis tabled a vendor bid of $1.55m. A second vendor bid of $1.625m was put forward but with no further bidding on the day, the property was passed in. It sold later for $1.66m.

Properties we like, auctioning this week:

Auction Opinion: “How have you seen the start of the year compared to last year?”

Tim Derham (Abercromby’s) “Stock levels for quality family homes are down as compared to last year. If open for inspections are an indication then this market will continue from where it left off in 2015.”

Brighton: 14 Vaucluse St (Peter Kennett, Hocking Stuart) sold $1.87m

Saturday was almost the finale for 2015 and spirited bidding continued for the better properties. There is only a scattering of auctions now before Christmas is upon us.

Although the number of bidders was still quite healthy, it does seem that buyers, sellers and agents alike are looking forward to a break now – it has been a big year for the property market.

2015 Snapshot

Auction Spotlight:

Land sales:

Auction Highlights:

Hampton: 9 Bolton Ave (Mark Earle, Buxton), sold $2.47m

9 Bolton Ave, Hampton (Mark Earle, Buxton), sold $2.47m, 5 bidders

A brisk 9.30am start and there was a huge crowd lining Bolton Ave, all keen to see what would happen at the auction of this north-facing block of approximately 725sqm in one of Hampton’s most desirable streets. Mark Earle was our auctioneer and, with a strong Buxton presence, delivered a thorough preamble before calling for an opening bid. Before he had even finished his sentence, an opening came from our first bidder at $1.9m. We quickly had two bidders competing and at $2.2m Mark announced he would be selling. This spurred three more bidders to enter the fray – bidding continued steadily until we reached the sale price of $2.47m.

Brighton: 14 Vaucluse St (Peter Kennett/Tamara Whelan, Hocking Stuart), sold $1.87m, 2 bidders

14 Vaucluse St, Brighton (Peter Kennett, Hocking Stuart), sold $1.87m, 2 bidders

Peter Kennett is always entertaining, and this auction was no exception! Around 50 people lined the quiet cul-de-sac to see what would transpire at number 14 – a single storey in a convenient pocket of Brighton. Peter kick-started proceedings with a vendor bid of $1.65m and after some gentle encouragement, Bidder 1 entered at $1.67m. Bidder 2 chimed in at $1.69m and we had a two-way battle on our hands. At $1.85m, Peter headed inside to refer to his vendor and upon his return he announced he would be selling. The hammer came down a short time after at $1.87m to a round of applause.

Hawthorn: 9 Fairmount Road (Glen Coutinho, RT Edgar Boroondara), sold after auction undisclosed

9 Fairmount Road, Hawthorn (Glen Coutinho, RT Edgar Boroondara), sold after auction undisclosed, 3 bidders

Pleasant Saturday December afternoon for this auction. Sitting out the front of the home is a coffee van – you can always count on RT Edgar (Boroondara) for that at their auctions…it is a nice touch and cleverly it reserves space for the auction team as it drives away.  I along with about 50 others are entertained by auctioneer Glen Coutinho’s pre-auction spiel – it is very Australian I like to think, being good humoured and never tending to go on for too long. Opening with a bid of $2.5m, Glen enjoys friendly banter with the crowd and gets a few laughs along the way to see bidding from 3 parties. The property passes in for $2.7m then sells for an undisclosed amount shortly afterwards.

Agent Opinion – 2015 in Review

John Bongiorno (Marshall White): “Overall, when we look back on the year that has just passed, it would have to be said that the Melbourne real estate market has had a fabulous year. Low interest rates, a steady economy, strong demand both locally and internationally, have all been factors that have seen such a positive impact across the board. The year has finished off extremely strongly with, again, demand clearly outweighing supply which, looking at the crystal ball for 2016, can only be viewed in an optimistic light.”

Christmas Wishes

This will be our last Market Pulse for 2015. Thank you for all for your support!

We would like to wish everyone a happy and safe holiday period. We are looking forward to returning mid-January next year.

Malvern: 46 Jordan St, Malvern (Justin Long, Marshall White), sold $2.8m, 3 bidders

Saturday was the first auction day for summer and some results were a little patchy. Whilst we still saw solid results for good homes, there were quite a few pass-ins particularly for properties on some of the busier streets of Bayside – 106 Abbott Sandringham, 14 Highett Hampton, 8 Carpenter Brighton, 176 Cochrane Brighton and 37 Male Brighton.

Balwyn North again had a lower than Melbourne average clearance rate, a contrast compared to mid-year when most properties were selling.

Hawthorn East was solid with good results at 5 Harold Street (Stuart Evans/McGregor, Marshall White), 20 Invermay Grove (Parker/Murphy, Hocking Stuart) and 6 Rosslyn Street (Sutherland/Ptak, Marshall White).

One of the trends we have seen this year has been the offering of multiple dwelling properties on one title – 111 Tennyson Street Elwood, 41 Grandview Grove Prahran, 3 Corsewell Close Hawthorn, 41 Atkins Street Kew to name a few.

Two more sold last week – both were older (c1920/1930) apartments:

Auction Spotlight:

Land sales:

Off-markets:

Auction Highlights: 

East Melbourne: 1-4/95-97 Simpson St (Biggin & Scott), sold $3.121m

1-4/95-97 Simpson Street, East Melbourne (Andrew Crotty, Biggin & Scott), sold $3.121m, 3 bidders

A really good crowd of about 150 turned out with the auction of the 95 year old apartment block of four in East Melbourne.  According to auctioneer Andrew Crotty it took 15 years to get this listing, and he gave a spirited yet concise preamble. Opening with a bid of $2.1m, it didn’t take too long for this to reach well beyond $2.5m with two bidders. Not long after bidder 3 came in to play and bidding stated to slow down with a serious of smaller bids between bidders 2 and 3. At $2.888m a mini-break was taken and instructions were checked with the vendor. Shortly after the property was announced on the market and the bidding continued in fractured amounts. At $3.121m the property sold to bidder 3 – a really big result yet given the rarity of offering and close proximity to the CBD, no doubt the purchasers would be very pleased.

Brighton East: 2 Alford St (Buxton), sold $1.62m

2 Alford Street, Brighton East (Jack Johnstone, Buxton), sold $1.62m, 3 bidders

Jack Johnstone confidently stepped out on to Alford St as though he’d been auctioning for years! The 65 or so people in the crowd were treated to a thorough and entertaining preamble before Jack launched in to the formal part of the auction – the search for bids. Bidder 1 was quick to join in with an opening bid of $1.2m. Bidders 2 and 3 entered the fray not long afterwards and after a flurry of bids, Jack announced we were selling at $1.4m. The avalanche of bids continued until the hammer came down to the delighted new owner at $1.62m.

Elwood: 8 Joyce St (Chisholm & Gamon), sold $2.53m

8 Joyce St, Elwood (Torsten Kasper, Chisholm & Gamon), sold $2.53m, 6 bidders

The quiet tree-lined Joyce Street was buzzing as the crowd eagerly awaited the start of the auction at number 8. Torsten Kasper took centre stage and after a thorough preamble called for an opening bid. All remained quiet so Torsten tabled a vendor bid of $1.9m to kickstart proceedings – and kickstart it, he did! Bidders 1,2 and 3 entered quickly and took bidding to $2.02m. Bidder 4 put forward a ‘knock-out’ bid of $2.2m and soon after Torsten advised that the reserve had been met and we were selling. In total there were six bidders – the hammer finally coming down at $2.53m to a round of applause and a very relieved new owner!

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Brighton: 50 Asling St (David Hart, Buxton), sold $4.13m, 6 bidders

Saturday’s auction results demonstrated that 2015 is going to finish the way it started. On a record number of properties available for auction, the market saw a reported 66% clearance rate. The overall sentiment from buyers is still positive for the $1m plus market.  Although there were a few properties sold beforehand at higher levels, the highest result on Saturday was 34 McKean Street Fitzroy North (Stephens/Laferia, Nelson Alexander), a renovated warehouse by renowned Melbourne architect Kerstin Thompson for an undisclosed price in the high $4millions.

34 McKean Fitzroy – a great example of why it pays to get a good architect

Interest is now turning to 2016. The first quarter is likely to be short and sharp – Easter (Good Friday) falls early on the 25^th March. Vendors who have run out of time to auction this year should feel confident that buyer interest will continue next year and for those vendors whose properties have ‘passed in’ recently there may still be good opportunities to sell before Christmas with a number of under-bidders still wanting.

Auction Highlights:

Land sales:

Off-markets:

Talk and activity is increasing with respect to off-markets and 2016 pre-markets.

Auction Spotlight:

14 Bateman St, Hampton (Robin Parker, Marshall White), after auction $2.6m, 4 bidders

As Robin Parker started his preamble, a black Maserati purred down the street and grinded to a halt outside number 14 Bateman. The crowd of around 35 watched intently and admired the car before Robin resumed his preliminaries and called for an opening bid. Bidder 1 offered $2.1m and we were away. Bidders 2 and 3 entered soon after and at $2.525 Robin ducked inside to refer to his vendor. Back outside, he advised us that he wasn’t quite at reserve and the property passed in soon after at $2.555m. Sold after auction for $2.6m.

Hampton: 14 Bateman St (Robin Parker, Marshall White), after auction $2.6m, 4 bidders

25 Ash Grove, Malvern East (John Morrisby, Jellis Craig), sold $2.54m, 4 bidders

A big crowd of around 85 people line Ash Grove to see what would happen at number 25. John Morrisby was our auctioneer and after a succinct preamble called for an opening bid. All was quiet so he tabled a vendor bid of $1.825m to kickstart proceedings. In the end we had three bidders in the mix, and as an unreserved auction, the home eventually sold for $2.54m to a big round of applause.

Malvern East: 25 Ash Grove (John Morrisby, Jellis Craig), sold $2.54m, 4 bidders

Agent Opinion: Following on from the Domain article this week, is the market still strong for all properties, or are you noticing some changes in the amount of buyers, their interest and competition for the A Graders, B Graders & C Graders in  your area?

Sam Gamon (Chisholm & Gamon): “The question really comes down to houses v apartments because we’re seeing a two-speed market and have been for about 6 -8 weeks. Houses are attracting huge competition and generally have an abundance of buyers whereas apartment interest is slackening off unless it’s suitable for downsizers as owner occupier properties, has a high level of finish or a significant point of difference such as Art Deco features, house-like proportions or generous outdoor areas. Quality is the key in both market segments and we are feeling the B and A-grade homes are finding less attraction in the market place. Buyers are probably being a little less forgiving so it’s important for vendors to place significant emphasis on their presentation and pricing. You don’t get a second chance to make a first impression so make it count. “Attraction” properties generally always go well and we have huge demand for those top tier houses, townhouses and apartments. The market is currently carrying some historically high stock levels which means buyers are likely to be more discerning. Consider selling your home in December or mid-January when there is potentially less available.”

Malvern East: 8 Coppin St (John Morrisby, Jellis Craig) passed in $3.5m

There are signs that the buyers are starting to move their focus away from property and onto more pressing deadlines such as Christmas, shopping and holidays. The number of buyers inspecting at opens is starting to slow. That said, the buyers for the good properties are still there. Last week Marshall White sold two large family homes, both over $6million at 53 Hawthorn Grove Hawthorn (Zali Reynolds) and 9 Bates Street Malvern East (Rae Tomlinson).

Last week we looked closely at Balwyn North, which was looking a little over-supplied (and/or) with vendors wanting prices well above the market. The clearance rate last week was 45%. This week there were 16 auctions reported with only five bought, resulting in a clearance rate of 31%. The trend appears to be continuing.

Another property up for sale after being purchased only 14 months earlier for $3.17m was 15 Nevis Street, Camberwell. A large newer home on 722sqm with north rear passed in on a vendor bid of $3.1m.

In keeping with our thoughts of a continuing strong downsizer market, two good properties sold in Kew with Jellis Craig circa $2.5million – 92 Wellington Street (Greg Toogood) and 70 Foley Street (Peter Vigano).s

Auction Highlights:

Land sales:

Off-markets:

Auction Spotlight:

North Melbourne: 35 Little Leveson St (Edward Hobbs, Biggin & Scott)passed in, $1.977.5m

35 Little Leveson St, North Melbourne, Edward Hobbs (Biggin & Scott), passed in, $1.977.5m, 4 bidders

A great crowd of well over 100 gathered in the laneway that is Little Leveson Street in North Melbourne. The offering was a unique one, and not easily repeatable – a classy inner city warehouse conversion close to great cafes (such as the Auction Rooms) and a short walk to the CBD. Auctioneer Edward Hobbs have a brief preamble and then didn’t have to wait too long for an opening bid, which came instantly at $1,770,000. A string of bids followed from three other parties and the property eventually passed in at $1,977,500 and remains for private sale at the time of writing with an undisclosed reserve.

Malvern East: 32 Forster Ave (John Morrisby, Jellis Craig), under hammer $1.87m

32 Forster Ave, Malvern East (John Morrisby, Jellis Craig), under hammer, $1.87m, 4 bidders

Slight drizzle didn’t deter the crowd at this Malvern East auction. John Morrisby was our auctioneer and, assisted by Andrew Luke, stepped out on to Forster Ave and called for an opening bid. Unable to secure one, he instead tabled a vendor bid of $1.5m to kick-start proceedings. One by one, four bidders entered the competition and at $1.69m John announced he would be selling. Bidder 4 was a late entrant but left with the prize when the hammer came down at $1.87m to a round of applause.

Brighton: 25 Meek St (David Hart, Buxton), after auction $2.4m

25 Meek St, Brighton (David Hart, Buxton), after auction $2.4m

Auctioneer David Hart was met with quite a big crowd as he took centre stage on Meek Street alongside Phillip Mellody and Tom Davidson. A vendor bid of $1.95m was tabled before Bidder 1 chimed in at $2m. Bidder 2 offered a $50k rise and bidding continued until the price reached $2.24m and the property was passed in. The home sold after auction for $2.4m.

Agent Opinion: “We are constantly asked how the Melbourne market compares to that in Sydney. Here is an interesting take”

Geoff Hall (Kay & Burton): “Despite some cooling of the market on a national basis, Melbourne is the hottest housing market in the nation, with Sydney in second place over the past quarter.

Whilst the volume of stock is up considerably on this time last year in Melbourne, the number of quality family homes on offer is relatively low. This is the key reason that clearance rates for houses in good locations remains consistent and in excess of 75%.

National dwelling values across the combined capital city index rose 0.2% over the month of October and were up by 1.4% over the quarter and 10.1% higher over the year.

In the latest price data up to the end of October, the annual price growth gap between Sydney and Melbourne has closed coniderably. In the past three months, Melbourne’s home value index has increased 3.1%, easily the biggest among the capital cities, while Sydney’s rose only 1.5%. In annual terms, Sydney is up 15.6% and Melbourne 12.8%. If the current trend continues in a month or two these positions will be reversed.

A survey of property valuers, financiers and market analysts has predicted property prices in Sydney and Melbourne will continue to increase for the next six to twelve months. Around half of the respondents to “The Property Directions Survey”released by the Australian Property Institute, said an upward trend will continue for a further six months. One third of respondents believed the upward trend will last a further 12 months in both Sydney and Melbourne.”

15a Dixon St Malvern (Kevin O’Brien, Jellis Craig) opened at $1.6m, on the market at $1.8m and sold under the hammer for $1.97m. Two bidders, fast auction.

The market is continuing to roll along at a steady pace.   As the end of year closes in the competition to buy is still strong, particularly for properties close to good private schools or those within renowned public school zones. 5 Prince Street, Hampton (Jenny Dwyer, Hocking Stuart), a ‘volume’ build family home sold for $2,100,000.

There are still some good options for buyers auctioning in December and many of which should attract spirited bidding come auction day.

In areas of good supply (perhaps even over supply), the market seems to be slowing a little. Maybe some vendors are even getting a little ahead of the market. Balwyn North for example, according to REIV records, saw 11 properties up for auction on the weekend with only 5 of these sold – a clearance rate of only 45%.

Auction Highlights:

Downsizer Properties:

Demand continues to strengthen for quality downsizer offerings – single storey homes close to amenities.

On a different note, in Hawthorn East there were four properties auctioned on the weekend and all were purchased within the last two years. Although they didn’t all sell, they all had bidding above their earlier sale prices.

Off-markets:

Auction Spotlight:

Malvern East: 16 Westgarth St (Damien Davis, Jellis Craig), passed in $3.125m, 3 bidders

26 Westgarth St, Malvern East (Damien Davis, JC), passed in $3.125m, 3 bidders

This pretty Federation style home is situated on a leafy street described aptly by auctioneer Damien Davis as a “Plane Tree Tunnel.” Around 70 people crowded around to see what would transpire and Damien called for an opening bid. All remained quiet, so Damien suggested an opening of $2.8m to kick-start proceedings. Still quiet, so he tabled a vendor bid at this amount. Silence ensued so Damien headed inside to refer to his vendor. Back outside and he was rewarded with bids from 3 interested parties who each entered the competition with a succession of $25k increments. The price eventually reached $3.125m, and Damien passed the property in for further negotiations. The home remained for sale at the time of publishing.

Hampton: 36 Avondale St (Steve Tickell, Hocking Stuart), sold after auction $2.53m, 2 bidders

36 Avondale St, Hampton (Steve Tickell, Hocking Stuart), sold after auction $2.53m, 2 bidders

Beautifully presented Californian bungalow in one of Hampton’s most prized streets – Steve Tickle was our auctioneer, assisted by Jenny Dwyer and Will O’Brien. An opening bid of $2.2m came from a gentleman in the crowd, however everyone else remained silent so Steve headed inside to refer to his vendor. Back outside and Bidder 2 entered the competition with a $25k rise. A second half-time break at $2.44m and with no further bidding on the day, the property was subsequently passed in. The home was sold after auction for $2.53m.

Agent Opinion: With only 3 weeks for campaigns to start (auction date 19th December), will there be a late rush?

James Tostevin (Marshall White): “I’m not anticipating a late rush of auctions on December 19^th, at this stage. The market remains strong however, many vendors are basing their price expectations on results from 2 to 3 months ago, which is not in line with current market conditions.”

Armadale: 12 Denbigh Rd (Anthony Grimwade, RT Edgar), passed in $3.775m, 1 bidder

Off the back of Cup weekend, we saw quieter auction activity with a smaller sample size and some lesser quality properties on offer. The clearance rate according to the REIV was 71%, which is still quite healthy.

With Christmas not far away, stock numbers are slowing.  Unless vendors are prepared to shorten their campaigns, there are only three more weeks where we are likely to see new properties advertised for auction – this would take us to the 19th December. Agents are starting to talk of upcoming auctions for 2016 and ‘off-market’ properties, quietly for sale now.

Brighton East: 22 Shasta Ave (Halli Moore, Buxton) passed in $2.325m, 2 bidders

Auction Highlight:

Land sales:

Off-markets:

Sold before auction:

Auction Spotlight:

Glen Iris: 17 Clyde St (John Morrisby, Jellis Craig), sold $1.92m, 4 bidders

17 Clyde St, Glen Iris (John Morrisby, Jellis Craig), sold $1.92m, 4 bidders

About 60 people were in attendance for the auction of this basic period home on about 650m2 with north facing rear and two-storey flats to the eastern side. Representing basically entry level into this area, Auctioneer John Morrisby gave a good preamble and then looked for an bid of $1.5m.  Listing agent Ian McLennan scouted the crowd for bidders and before long three were in play, seeing the property to be announced on the market at $1.826m. Not long after Bidder 4 timed her run late and needed only two bids to buy the property under the hammer for $1.92m – good tactic this. Sometimes it works, sometimes it doesn’t!

Armadale: 5 Barkly Ave (Kevin O’Brien, Jellis Craig) passed in $1.85m

5 Barkly Ave, Armadale, Kevin O’Brien (Jellis Craig), passed in $1.85m, 1 bidder

A colourful ice-cream cart offering free frozen treats brightened up a rather gloomy Spring morning. Kevin O’Brien was mindful of the ominous weather too, and gave a fast-paced preamble to ensure that proceedings weren’t interrupted by rain. Calling for an opening bid, but met with the usual silence, Kevin tabled a vendor bid of $1.75m to get things underway. After a half-time break, Bidder 1 offered to meet Kevin’s vendor bid, which Kevin accepted before tabling a second vendor bid of $$1.775m, and then a third of $1.85m. With no more bidding on the day, the property was passed in and remained for sale at the time of publishing.

Middle Park: 150 Canterbury Rd (Greg Hocking), passed in $3.5m

150 Canterbury Road, Middle Park (Greg Hocking, Greg Hocking Holdsworth), passed in $3.5m

Greg Hocking, assisted by John Holdsworth, stepped out onto Canterbury Rd in the early afternoon sunshine in front of a crowd of around 30 people. After a succinct preamble, Greg asked for an opening bid but, unable to secure one from the quiet crowd, tabled a vendor bid of $3.5m to kickstart proceedings. Inside for a half-time break, Greg returned and did his utmost to encourage bidding. Unfortunately the crowd remained silent and Greg was forced to pass the property in.

Architectural Insight: Swimming Pools

Should we have a pool or not? Is it worth buying a home with a pool even if we don’t need one yet? These are some common questions and when looking at a property with a pool, there are some key things to look for:

Often buyers do not want a pool and will not look at properties that have them. These can be good opportunities for buyers, as you can easily remove and/or fill them in – at a cost of course. While this is not that simple, it is possible and certainly worth considering.

Agent Opinion:“The lead up to Christmas is looking to be much of the same as it was before Melbourne Cup Weekend. Do you think that the market will change after Christmas, or do you expect it to stay the same?”

Julian Augustini (Hodges): “Spring stock levels heading into the latter part of the year are solid but there is not an oversupply. I would expect that if a 70% success rate maintains across Melbourne until the end of the year, then a positive market will flow through into 2016. “

Malvern: 67 Wheatland (Jack Bongiorno, Marshall White), sold $2.555m, 2 bidders

The ‘biggest’ auction weekend for the year passed the test, with an overall clearance rate of 71% suggesting the state of the market overall is still quite strong, although under the weight of record numbers the market showed some signs of pegging back.

Buyers are starting to demonstrate discernment for properties such as those with privacy or noise issues and those where a lot more (yet to be quantified) money may be required to improve the property.

For some auctions on the weekend, two buyers were at higher levels than the rest of the crowd, providing good outcomes for vendors. With one of each of those buyers having now purchased, this may have an impact on future results for some properties.

Whilst the number of bidders can be used as a guide to help qualify buyer depth, where the bidding starts can also impact the numbers. Sometimes a higher starting point can eliminate interested parties. Therefore, a full understanding of the market can be helpful. Two bidders, does not necessarily mean only two people wanted the property, it means that only two people were interested at the declared levels.

A reduction in the number of buyers with capacity to spend a little more, may not necessarily mean that overall buyer depth has dropped. For vendors who are willing to meet the market, the market may still be there. Time will tell.

From our observations there is still strong competition for the following:

Very good crowd in leafy Central Park Rd, Malvern East. John Morrisby (Jellis Craig) 3 bidders, bought for $3,055,000.

Auction results:

Land sales:

We are still seeing a number of properties selling before auction. This can still be a good strategy to buy your new home, however, it will help to have a good understanding of values. Where you may believe you are offering an enticing price to avoid competition on auction day, you may also now be the only buyer and good agents recommending vendors accept offers in these instances rather than allow the buyer to see they may be the only buyer on auction day.

With Cup weekend looming the market will take its last mini break with a final run to Christmas.

We have seen a lot of homes purchased over the last fortnight, and many of the successful purchasers will now have homes to sell, replenishing the recently depleted stock numbers.

This should hopefully provide a good number of properties for buyers to consider right up until Christmas as most of these buyer/sellers will be wanting to sell before the long summer break to minimise any exposure to changes in the market place.

 Auction Spotlight:

Malvern: 50 Glendearg Grove (Andrew Hayne, Marshall White), after auction undisclosed, 3 bidders

50 Glendearg Grove, Malvern, Andrew Hayne (Marshall White), sold after auction undisclosed, 3 bidders

Close to 100 people gathered to see what would transpire at 50 Glendearg Grove – a pretty renovated period home on approximately 750sqm near shops, cafes and station. Andrew Hayne was our auctioneer and after a thorough preamble, called for an opening bid. Bidder 1 offered $2.4m and Andrew promptly tabled a vendor bid of $2.6m. Bidder 1 accepted the challenge and bidders 2 and 3 soon entered the competition. Bidding continued until the price hit $2.95m when Andrew passed the property in for further negotiations. Sold after auction for an undisclosed amount.

Malvern: 67 Wheatland Rd (Jack Bongiorno, Marshall White), sold $2.555m, 2 bidders

67 Wheatland Road, Malvern, Jack Bongiorno (Marshall White), sold $2.555m, 2 bidders

Not quite as big a crowd as the previous auction in Glendearg Grove, but still impressive as around 70 people lined the street to watch proceedings. Jack Bongiorno took centre stage and tabled a vendor bid of $2m straight out of the gates to kickstart the bidding. Bidder 1 came in at $2.05m, Bidder 2 at $2.075m and at $2.47m Jack went inside to speak with his vendor. Back outside and the reserve has been me – bidding continued, with Jack professionally extracting every last bid out of both bidders. The hammer finally coming down at $2.555m to a round of applause.

Agent Opinion: There was an expectation that there was always going to be a late run this year, with a surge close to Christmas. Is that the case, or do you think that stock levels are lower than expected?
Tim Derham (Abercromby’s): “There has been an increase in listing activity  in the marketplace in the lead up to Christmas. Stock levels remain high for November which is consistent with our expectations but will taper off come early December. There are a significant number of highly qualified buyers keen to buy this side of Christmas.”

Hampton: 29 Thomas Street (Campbell Cooney, Hodges), strong auction – big crowd of 100 – sold $2.43m

While there has been intensified talk in the media for the last week about the property market crashing, we didn’t see any evidence of that on Saturday, particularly for the well-positioned, good properties.

Some agents are claiming a reduction in numbers at opens, but with the great weather upon us and many properties to look at (often opening at the same time as competing properties), this may be one explanation for the perceived drop.

With another big weekend of auctions and quality properties next weekend, a similar result could see us continue with this market through to Christmas.

Auction results:

Land sales:

Sold before auction:

With multiple bidders and results often well above the quote price, should buyers just pay more? Click Here to read our thoughts.

Auction Spotlight:

Hawthorn: 20 Elgin St (Kay & Burton), sold $1.86m

20 Elgin Street, Hawthorn (Walter Dodich, Kay & Burton), sold $1.86m

A pleasant morning greeted 80-100 people for this auction, in a popular West Hawthorn location. Auctioneer and listing agent Walter Dodich gave a no-nonsense preamble and got straight into proceedings without too much fuss. The home at 20 Elgin Street was located on the corner, and thus the crowd was well spread out, but Walter and supporting agents Geoff Hall and Andrew Jose did not miss any of the bidders. Opening at $1.4m, three bidders took part in the action seeing the property come on the market at $1.65m and sell strongly not long after for $1.86m.  Key pluses to this property; single level, car garaging, free-standing brick home and this well appeals to downsizers, couples, singles and small families.

Toorak: 4 Landale Road (Marshall White) sold $2.792m, 3 bidders

4 Landale Road, Toorak, Justin Long (Marshall White), sold $2.792m

Justin Long showed the patience of a saint at this Toorak auction, which lasted a good 45 minutes and featured well considered & last minute bidding – as well as big and small increments from each of the three bidders – throughout proceedings. An opening bid of $1.8m came from the crowd and two additional bidders were quick to join the action. Inside at $2.5m and Justin returned to advise that the reserve had been met. Bidder 2 eventually pulled out of the race, while bidders 1 and 3 battled it out for at least another 30 minutes – Bidder 1 strategically slowing down the bidding and then offering $1k rises, while Bidder 3 fluctuated between big and small bids in an attempt to throw off his opponent. With each small increment, after Justin called it down three times (each time!), the crowd sighed – it seemed the auction would never end! Justin was professional throughout and managed to extract every last bid from both parties, right up until the hammer came down at $2.792 to Bidder 1. The crowd applauded – most seemed amazed at how long the auction actually was!

Sandringham: 141 Abbott Street (Buxton), after auction $1.73m

141 Abbott Street, Sandringham, Mark Earle (Buxton), after auction $1.73m

The sun was blazing by early afternoon – just in time for the auction of this Sandringham property in a popular family locale. Mark Earle stood in front of a crowd of around 65 people and extolled the virtue of this large family home on a prominent corner block. Opening on a vendor bid of $1.55m, Mark looked for $20k rises. Unable to secure one, he offered a second vendor bid of $1.6m and subsequently passed the property in with no genuine bids on the day. The home was sold after auction $1.73m.

Agent Opinion: “We have seen a big trend in down-sizers. Port Phillip has always been a good down-sizer area – have you seen any changes in the demographics in this area of late?”

Damian O’Sullivan (Marshall White, Albert Park): “Our market place has always been a big draw card for the ‘down-sizers’ who cherish the low maintenance lifestyle and village atmosphere that typifies Albert Park, Middle Park and surrounds. The down-sizers have been particularly active of late as they look to acquire a home for the new year and beyond as the finish to the school year looms and their ‘empty nester’ status becomes a reality. We find that the down-sizers are often simply returning to the neighbourhood they once enjoyed before having to move to other areas such as Stonnington and Booroondarra which offer more family sized accommodation and an abundance of choice in terms of schooling.”